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Category Archives: Miscellaneous Cases

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Georgia Supreme Court: Foreclosure Confirmation Requirements Can be Waived By Borrowers And Guarantors

Posted in Consumer Bankruptcy Guide, Georgia State Cases, Miscellaneous Cases
Did the Georgia Supreme Court effectively repeal the foreclosure confirmation statute by affirming the rights of lenders to include waivers in their standard loan documents for both borrowers and guarantors?  That appears to be the case.  In PNC Bank, NA v. Smith, No. S15Q1445, 2016 WL 690406 (GA 2016) (download .pdf), the U.S. District Court… Continue Reading

Bitcoin – Currency or Commodity For Purposes of §550 And Avoidance Actions? What About Claims?

Posted in Corporate & Fiduciary Litigation, Miscellaneous Cases, News and Comments
Bitcoin – currency, the equivalent of U.S. dollars, or a commodity more similar to a product or stock? (What is Bitcoin?).  If a Trustee sues to avoid and recover a transfer of Bitcoin, is the claim amount for the value of the transfer at the time of the transfer, or increased (or decreased) value at… Continue Reading

Arrested For Not Paying Student Loans? No – The Paul Aker Story Was Essentially Fabricated

Posted in Miscellaneous Cases, News and Comments
“Believe it or not, the US Marshals Service in Houston is arresting people for not paying their outstanding federal student loans.”  So says Fox 26 Houston reporter Isiah Carey.  The problem is, this statement is absolutely false.  Paul Aker owed student loans, and was apparently in default.  Paul Aker was sued for the student loan… Continue Reading

Filing Proof Of Claim For Time Barred Debt Violates FDCPA, Says Eleventh Circuit, But They Leave An Escape Hatch.

Posted in Eleventh Circuit Cases, Miscellaneous Cases
In the last couple of years, claims against creditors for alleged violations of the Fair Debt Collection Practices Act (FDCPA) have become a hot item in Bankruptcy Courts.  One such question is whether the filing of a proof of claim for a stale debt (i.e., one that has become unenforceable pursuant to the applicable statute… Continue Reading

Reese v. Provident Funding: Georgia Court of Appeals Ruling Potentially Invalidates Thousands Of Foreclosures

Posted in Georgia State Cases, Miscellaneous Cases, News and Comments
In a case of first impression, the Georgia Court of Appeals has held that a foreclosure notice must identify both the secured lender and the "individual or entity who shall have full authority to negotiate, amend, and modify all terms of the mortgage with the debtor."  Reese v. Provident Funding Associates, LLP, 2012 Ga. App. LEXIS… Continue Reading

Ritz Camera, Parent of Wolf Camera and Boaters World, Files Chapter 11 Petition in Delaware

Posted in Miscellaneous Cases
Ritz Camera & Image, LLC, and Ritz Interactive, LLC filed Chapter 11 Petitions in Delaware today.  The Ritz Camera case is Case No. 12-11868 (click here for Chapter 11 petition).  The debtors have filed a Motion for Joint Administration under the Ritz Camera case number. Ritz operates several retail stores in Georgia under the Wolf… Continue Reading

Can Creditors File A Derivative Action Against Limited Liability Company?

Posted in Corporate & Fiduciary Litigation, Georgia State Cases, Miscellaneous Cases, News and Comments, Small Business Bankruptcy
In CML V, LLC v. Bax, No. 735, 2010 (Del. Supr. Sept. 2, 2011) (click here for .pdf of opinion), the Delaware Supreme Court addressed the questions of whether a creditor can file a derivative action against a limited liability company.   Plaintiff CML asserted the following derivative claims against the present and former members of… Continue Reading

Assignments of Trademarks in Bankruptcy – Judge Posner and 7th Circuit Provide Answer

Posted in Corporate & Fiduciary Litigation, Miscellaneous Cases, News and Comments, Small Business Bankruptcy
The Seventh Circuit Court of Appeals has issued the first published Circuit Court opinion on the question of whether trademarks are assignable in a Bankruptcy case.  The opinion, authored by Judge Posner, is in the case of In re XMH Corp., Nos. 10-2596, 10-2597, 10-2598, 10-2599,  2011 U.S. App. LEXIS 15372 (7th Cir. July 26, 2011) (click… Continue Reading

Business Owners: When Can You Decline Employment To Applicant With Previous Bankruptcy Filing

Posted in Miscellaneous Cases
With the economy and unemployment figures as they are today, many businesses find they have many more applicants for a job opening.  This means employers may look for more ways to filter the resumes before the final rounds of interviews.  Should a personal bankruptcy filing in the applicant’s past be considered in employment decisions? Many employers… Continue Reading

Lawsuits Being Flying Against Officers, Directors, Insiders And Professionals Of Failed Banks

Posted in Corporate & Fiduciary Litigation, Georgia State Cases, Miscellaneous Cases, News and Comments, Northern District Cases
The State of Georgia is among the national leaders in banks closed by state and federal agencies.  So far in 2011, six Georgia banks have been closed, with the latest two being Habersham Bank and Citizens Bank of Effingham.  Since late 2008, when the banking crisis hit, a total of fifty seven Georgia banks have… Continue Reading

Individual Liability For Unpaid Federal Withholding Taxes

Posted in Miscellaneous Cases, News and Comments, Small Business Bankruptcy
It is not uncommon for financially distressed businesses to get behind on payroll taxes, especially when the company does not have a payroll service that handles the payment of all taxes and automatically deducts the full amount from the company’s bank accounts.  Chapter 11 cases often have significant unpaid payroll taxes scheduled as a priority… Continue Reading

When Are 529 Educational Funds Property Of The Bankruptcy Estate?

Posted in Consumer Bankruptcy Guide, Miscellaneous Cases, News and Comments
Section 529 Plans are tax advantaged savings plans intended to encourage saving for future college costs. There are two types of qualified tuition programs: a prepaid tuition plan or a college savings plan They are authorized under Section 529 of the Internal Revenue Code (26 U.S.C. § 529).  Click here for a basic summary of 529 Plans. Are… Continue Reading

Bailey Banks & Biddle Parent Files Chapter 11

Posted in Miscellaneous Cases
Finlay Enterprises Inc., the parent company of jewelry retailer Bailey Banks & Biddle, filed their petition in New York yesterday. There are three Bailey Banks & Biddle stores in Atlanta: Lenox Square Mall, Perimeter Mall and Mall of Georgia. From the Atlanta Business Chronicle, the company announced plans to sell the business and assets at auction.… Continue Reading

Ritz Camera/Wolf Camera Give Up On Reorganization And Will Close And Sell All Stores

Posted in Miscellaneous Cases
The Atlanta Business Chronicle is reporting that Ritz Camera, which operates as Wolf Camera in many locations (incl. Georgia), is giving up its reorganization efforts and will try to sell all remaining locations.  Click here for the article by Barton Eckert. From the article: In a court filing, Ritz Camera reported it is talking with two… Continue Reading

Six Flags Amusement Parks Files Chapter 11 Bankruptcy Petition In Delaware

Posted in Miscellaneous Cases
From the Wall Street Journal, Six Flags, Inc., which has three parks in metro Atlanta (Six Flags, White Water and American Adventures), has filed a Chapter 11 Bankruptcy petition this morning in the District of Delaware.  Click here for the company news release and here for an article that attaches the petition. From the WSJ article –… Continue Reading

Crunch Fitness Files Chapter 11 In New York

Posted in Miscellaneous Cases
Crunch Fitness, which has a location on Piedmont Road in Buckhead, filed a Chapter 11 petition in New York today.  From Bloomberg – Crunch Fitness, a gym operator with 73,000 members and clubs in six U.S. cities, filed for bankruptcy protection from creditors in New York, citing slowing membership and overpriced leases for some locations.… Continue Reading

General Growth Properties, Owner Of Four Atlanta Malls, Files Chapter 11 Petition

Posted in Miscellaneous Cases
From Reuters, General Growth Properties, which owns Comberland, North Point, Perimeter and Southlake Malls in Metro Atlanta, field a Chapter 11 Bankruptcy petition in the Southern District of New York.  General Growth Properties Inc, the second largest U.S. mall owner, filed for bankruptcy protection on Thursday in one of the biggest real estate failures in U.S.… Continue Reading

Theme Parks Suffering With Economy? Six Flags May Be Filing Chapter 11 Bankruptcy And Ghost Town Already Has

Posted in Miscellaneous Cases, News and Comments
Six Flags Theme Parks, which includes Six Flags Over Georgia, Six Flags White Water, and American Adventures parks in the Atlanta area, is experience significant financial difficulties and there is speculation that a Chapter 11 Bankruptcy filing might be in its future. From the Associated Press: Shares of Six Flags Inc. fell in premarket trading… Continue Reading

Ritz Camera, Owner Of Wolf Camera and Boaters World, Files Chapter 11 Bankruptcy Petition

Posted in Miscellaneous Cases
Ritz Camera, the owner and operator of Boaters World and Wolf Camera, filed a Chapter 11 petition today in Delaware. Ritz bought Wolf in 2001 after Wolf filed a Chapter 11 in 2000.  Wolf had previously purchased Fox Photo.  Wolf has several stores in Atlanta, and Boaters World has two locations in Georgia. From Reuters: NEW YORK,… Continue Reading

Peanut Corporation of America Files Chapter 7 Bankruptcy Petition

Posted in Miscellaneous Cases
Georgia based Peanut Corporation of America, which obviously is facing a long list of problems, filed a Chapter 7 Bankruptcy petition in the Western District of Virginia. From Reuters: NEW YORK (Reuters) – Peanut Corporation of America sought bankruptcy protection on Friday after a salmonella outbreak traced to one of its plants led to one of… Continue Reading

S&K Menswear Files Chapter 11 In Virginia

Posted in Miscellaneous Cases
S&K Famous Brands., Inc., doing business as S & K Menswear, filed a Chapter 11 petition today.   The company has stores in Georgia and the Southeast. From Reuters: S & K Famous Brands Inc, which operates men’s clothing stores mostly in mid-Atlantic states and the Carolinas, filed for Chapter 11 bankruptcy protection on Monday,… Continue Reading